Language
Country/Area
No result found
Enter the world of international arbitration: How has the New York Convention changed the rules of dispute settlement?
With the rapid development of globalization, cross-border transactions between companies and individuals have become increasingly frequent, and the various disputes that have followed have also become the focus of attention from all parties. In such an environment, international arbitration has become increasingly important as an efficient way to resolve disputes. All these changes are inseparable from the New York Convention adopted in 1958.
International arbitration is an arbitration conducted between companies or individuals in different countries. It usually includes clauses in the contract to resolve future disputes, which makes dispute resolution in cross-border business easier.
The core significance of the New York Convention lies in its emphasis on the recognition and enforcement of international arbitration agreements and arbitral awards signed by the parties to the contract among the contracting states. According to this convention, more than 150 countries, including most major countries in trade and economic transactions, have signed and accepted this norm. This new rule not only gives transparency to international arbitration, but also promotes the efficiency of related dispute resolution.
The international legal system created by the New York Convention is greatly conducive to the enforcement of international arbitration agreements and awards, which is unprecedented.
Characteristics of international arbitration
As an alternative to local litigation, international arbitration operates in a unique way. In contrast to domestic arbitration, international arbitration follows a set of non-country-specific standards. This means that its procedures may be more narrow than general litigation norms.
The "Rules for Collection of Evidence in International Commercial Arbitration" revised by the International Bar Association (IBA) in 2010 is a concrete manifestation of this point. These rules do not adopt the broad disclosure provisions of the common law, but they do not completely exclude certain disclosure practices in the civil law system. The confidentiality of arbitration and the fact that not all details will be public create a lot of room for flexibility in practice.
Global execution
Nearly all developed countries in the world have become signatories of the New York Convention, which allows arbitral awards to be recognized and enforced worldwide. In contrast, there is no equivalent treaty guaranteeing the recognition of decisions of the International Court of Justice. However, according to Article III, the courts of each Contracting State must recognize and enforce international arbitration awards.
The New York Convention can be regarded as an important opportunity for the significance of international arbitration, providing more legal protection for international business.
Protection against litigation
Under the New York Convention, once a party files a lawsuit in the presence of an arbitration agreement, the court is obliged to recognize the written agreement of the parties and must submit the dispute to arbitration for resolution. This rule effectively protects the right to choose arbitration channels.
In the arbitration process, although confidentiality is generally implied or expressed, in fact, certain requirements of the court, arbitrators and even the parties themselves may cause a disconnect between confidentiality and openness.
Necessary arbitration agreement content
In most international arbitration agreements, several basic elements must be included, including explicit recognition of the arbitration agreement, definition of the scope of the dispute, selection of arbitrators, selection of the seat of arbitration and formulation of relevant arbitration rules, etc. .
International Arbitration Institution
Many international institutions and rule-making bodies provide support and regulation for the operation of international arbitration. Including the International Chamber of Commerce, the London Court of International Arbitration and other regional arbitration institutions. These institutions usually have a dedicated list of arbitrators and formulate arbitration rules to ensure the fairness and efficiency of the arbitration process.
International Investment and ICSID
International investment dispute settlement institutions, including the International Center for Settlement of Investment Disputes (ICSID), provide foreign investors with remedies against state defaults. By its design, ICSID arbitration results are not subject to review by domestic courts, which theoretically enhances the effectiveness of its enforcement.
As more and more countries participate in international arbitration, arbitration has become increasingly important in the international legal system and has become an important tool for resolving disputes.
However, while the New York Convention provides powerful legal tools to facilitate the development of international arbitration, the real success lies in the cooperation and commitment of the contracting parties. As globalization continues, can interaction and cooperation continue to be guaranteed?
